Retailers must not underestimate importance of gift cards and vouchers

UK gift card and voucher sales grew by 1.7% on a rolling year basis (0.9% like-for-like) in the second half of 2019.

According to research by UKGCVA and KPMG, digital products saw their market share rise by 5%, taking this from physical and paper alternatives. And while gift card sales continue to be dominated by traditional retail (accounting for almost two-thirds of the market), leisure gift cards have continued to gain market share, emphasising consumers’ increasing appetite for experiences over traditional product ownership.

“The clear resilience of gift card and voucher sales is testament to the importance of this avenue in generating additional revenue and boosting customer loyalty,” says Gail Cohen, Director General at the UK Gift Card and Voucher Association.

“They hold a whole array of new avenues for consumer-facing businesses to consider or improve upon, whether it be business-to-business sales as organisations look at new ways to incentivise and reward their people; or reminding ourselves of preferable buying choices, like the growing popularity of experiences.”

“All consumer-facing businesses need to think beyond the traditional view of this growing market, as gift cards and vouchers are changing rapidly and offer a whole host of new opportunities,” she concludes.